Big Boost For Business As EU Trade Barriers Slashed

Trade barriers within the European Union were dealt a fatal blow today as the European Parliament agreed the EU Services Directive. The landmark agreement will be worth up to £5 billion a year to the UK economy and create up to 135,000 jobs.

The EU Directive on Services in the internal market will cut red tape across the EU making it easier for service providers, particularly small and medium sized enterprises, to set up and offer services in other Member States.

Trade Minister Ian McCartney said:

"This Directive is genuinely market opening. Importantly, it achieves this goal without affecting essential protections in areas such as health and employment.

"It is good news for both UK businesses and UK consumers. We will now have a Europe where businesses and entrepreneurs can tap into new markets without facing a mountain of unnecessary rules and regulations.

"Competition will increase, giving consumers a much greater variety and choice of services, resulting in higher quality at reduced prices."

Services account for around two thirds of EU GDP so this measure will make one of the biggest improvements to the Internal Market since its original creation. The UK, with its strong services sector, will be one of the largest beneficiaries of the Directive.

The Directive covers a wide range of services. These include:

•    business services - such as management consultancy; advertising; facilities
     management and office management

•    services to business and consumers such as legal advice, estate agents and
      letting agents, architects, and distributive trades

•    consumer services such as tourism including tour guides and travel agents,
      leisure services, amusement parks, plumbers and electricians

The Directive means that the process of setting up in Member States will be streamlined and made simpler. Each Member State will also have to set up a single contact point on-line for all necessary information and applications.

In addition, the Directive will introduce a new electronic database to help Member States share information and work more closely together. This will help make sure that service providers meet their obligations to customers and that consumers across the EU are protected.

The Directive is expected to be implemented across the EU by early 2010.

Posted 15/11/06

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